FX.co ★ Silver Under Pressure as Trade Deals Curb Haven Demand

Silver prices maintained their downward trend on Monday, remaining below $38.50 per ounce after experiencing a decline of over 2% in the prior session. This pressure stems from recent trade agreements between the United States and key international partners, which have lessened the demand for safe-haven assets. Over the weekend, a trade agreement was reached between the US and the European Union, resulting in a reduced tariff of 15% on most EU exports, down from the previously threatened 30%. Additionally, the US reached trade agreements with Japan and Indonesia last week. As market participants look ahead, the focus is on further developments in the US-China trade negotiations, commencing later today in Stockholm. Expectations are that these discussions will extend beyond tariffs to encompass broader geopolitical and economic issues. Investors are also closely monitoring the Federal Reserve's policy announcement on Wednesday. It is broadly anticipated that interest rates will remain unchanged; however, attention will be directed towards any indications of a possible rate cut in September.